How Local House Prices Doubled Over The Past Decade

September 30th, 2023 - by Brad Gillespie

House prices have doubled in one in three Sydney suburbs over the past decade, and parts of the inner west have been among the best performers.

While Sydney’s highest growth suburb over the past 10 years was South Turramurra on the Upper North Shore, many suburbs here in the inner west aren’t far behind: Burwood (148.3%), Strathfield (146.1%) and Croydon (136.8%) all made CoreLogic’s top 10 list.

Interestingly, many of the Sydney suburbs that have done best have been those offering great family homes. That’s why the Upper North Shore and ‘outer’ inner west (Strathfield, Croydon, Burwood) have done so well.

How much have house prices risen in the inner west since 2014?

While decade-long suburb-specific numbers are difficult to come by, we’ve tracked down CoreLogic data collected over the eight years between 2014 and 2022 and have made the following calculations for how house prices in our area have performed over that time.

Suburb Median House Price 2014 Median House Price 2022 Price Difference % Gain
Alexandria $1,110,000 $2,130,000 $1,120,000 102%
Erskineville $1,007,500 $1,750,000 $742,400 74%
Redfern $1,010,000 $1,916,500 $906,500 90%
Newtown $950,000 $1,770,500 $820,500 86%
Marrickville $887,500 $1,950,000 $1,062,500 120%
Rosebery $1,164,000 $2,200,000 $1,036,000 89%

As these show, Marrickville has been the stand-out local suburb for house prices over the past eight years, followed by Alexandria.

That’s partly because both Marrickville and Alexandria can offer room to move, even if it comes at a price (the median four-bedroom house price in Alexandria is $2.3 million, according to realestate.com.au’ in Marrickville it’s $2.425 million).

But there’s also more to it than that.

Why Marrickville and Alexandria have been such strong performers

As we recently noted, Marrickville was named one of the coolest neighbourhoods in the world at the start of this year. And it’s definitely attracting a new wave of families, young professionals and couples keen to buy into a lifestyle that offers green spaces, great schools and some of Australia’s best brewpubs, cafes and restaurants.

It’s also popular because it offers a range of houses, from Victorian terraces and semis to a range of apartments, and larger blocks of land, giving people the freedom to move up and down the property ladder without leaving the suburb.

Meanwhile, Alexandria’s house prices are benefiting from the fierce competition between upsizers and downsizers.

The former have often started out in an Alexandria apartment and want to move into something bigger as the family grows. The latter have often recently sold a home in the suburbs and now want the inner city lifestyle with the privacy of a house rather than an apartment.

This is leading to some serious demand - especially for larger properties. For instance, Domain is showing that four-bedroom house prices in Alexandria have risen an average of 10% this year, even as the suburb average price fell.

What’s to expect for the next decade in Sydney’s inner city and inner west

We believe Alexandria and Marrickville will both continue to outperform the wider average over the coming ten years.

In both suburbs, we’re seeing new developments (although we need more) and new residents coming in. This kind of population growth caused by increased stock levels can often be very good for house prices.

It usually means more people moving to the area at an earlier stage in their lives and also more people wanting to upgrade down the track without moving too far from home. So, houses become more valuable due to their relative scarcity.

Both suburbs will also benefit from new infrastructure - including the Sydney Metro in Marrickville’s case - making them even more accessible than they are today.

That said, we expect our whole area to do well when it comes to property values. With interest rates stabilising, population growth back in full swing and a general lack of supply of quality housing, there is likely to be continued strong demand.

Unless the formula changes dramatically, homeowners in our part of the world should anticipate similar gains over the next decade.

Want more?

If you’re thinking of buying or selling in Sydney’s inner city and inner west, get in touch.